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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Sir Auric Goldfinger who wrote (25929)	2/21/2003 4:01:12 PM
From: OX	Respond to of 34822

tx for posting. re: the below section... >>>Well, you're going to collect the dividend flow from these stocks, OK? So that's going to probably get you about 3, 3.5 percent, risk- free, almost, OK. Then you can sell options against your positions and increase your yield to about 5.5 percent. <<< writing calls on the long stock (while still having the 2X inverse) no longer puts this in the "riskless" category, especially if the mkt takes off to the upside. I'm surprised that there isn't a "drag" on the inverse Rydex-type funds for dividend paying stocks. those rydex/profunds mgrs must be pretty darn good w/ their derivative trades in order to maintain a near perfect inverse. and BTW, brokers must love this type of "strategy".... commissions come to papa :-)